Forest Policy Group Value from supporting local forestry businesses – a scoping study 31 August 2017 Anna Lawrence, Rick Worrell, Guy Watt, Willie McGhee The Forest Policy Group (FPG) seeks to further the development of sustainable forestry in Scotland, by contributing informed inputs to the policy debate. Its membership is drawn from woodland organisations, forestry and land use professionals and timber users, who subscribe to a view of forestry in which: • environmental and social issues are treated as core parts of forestry on an equal footing with economic interests; and • diversity is actively fostered – diversity of tree species and woodland types, woodland tenure, management approaches, timber production and processing, and wider economic opportunities. 1 Table of Contents Executive summary ........................................................................................................................ 4 1 Introduction ............................................................................................................................ 7 1.1 Objectives ....................................................................................................................... 7 1.2 Rationale and approach .................................................................................................. 7 2 What is the small/local forestry sector? .................................................................................. 8 2.1 Defining the sector .......................................................................................................... 8 2.2 Some boundary issues ..................................................................................................... 9 2.3 A graphic representation of the sector .......................................................................... 10 3 A framework for assessing the evidence ............................................................................... 13 4 How many and what business activities are involved in the sector? ...................................... 13 4.1 Types of business activity and stakeholders ................................................................... 13 4.1.1 Growers and woodland owners ................................................................................... 13 4.1.2 Timber processors ........................................................................................................ 15 4.1.3 Timber manufacturers .................................................................................................. 15 4.1.4 Non-wood forest product producers ........................................................................... 16 4.1.5 Businesses using woodland locations ........................................................................... 16 4.1.6 Forestry suppliers ......................................................................................................... 16 4.1.7 Woodland Contractors ................................................................................................. 16 4.2 Summary of business activity types ............................................................................... 17 4.3 Conclusions to Section 4 ................................................................................................ 19 5 How many and what business types are involved in the sector? ........................................... 20 5.1 Small businesses in Scotland ......................................................................................... 20 5.2 Business types ............................................................................................................... 20 5.3 Whole industry survey 2000 .......................................................................................... 20 5.4 ASHS survey .................................................................................................................. 22 5.5 Conclusions to Section 5 ................................................................................................ 22 6 What motivates businesses in the sector? ............................................................................. 22 6.1 Woodland owners’ aims and motivations ...................................................................... 22 6.2 Innovation and entrepreneurship .................................................................................. 24 6.3 Studies of contractors ................................................................................................... 25 6.4 Innovation ..................................................................................................................... 25 6.5 Constraints .................................................................................................................... 25 6.6 Conclusions to section 6 ................................................................................................ 26 7 What do we know about the impact of the sector? ............................................................... 26 7.1 Indicators of impact ...................................................................................................... 26 7.2 Studies of potential impact of the sector ....................................................................... 27 7.2.1 Economic evaluation of the forest sector in Moray ..................................................... 27 7.2.2 Ayrshire & Arran Woodlands: Their Present & Future Contributions to the Diversification of the Rural Economy ........................................................................................... 28 7.3 Case studies of small businesses .................................................................................... 28 7.4 Social impacts ............................................................................................................... 29 7.5 Farm woodland ............................................................................................................. 29 7.6 Conclusions to section 7 ................................................................................................ 30 8 What do we know about the effectiveness of support to the sector? .................................... 30 8.1 General support to small businesses ............................................................................. 30 8.1.1 Business Gateway and Scottish Enterprise ................................................................... 30 8.1.2 Forestry Commission Scotland ..................................................................................... 31 8.1.3 Scottish Land Fund and other funders ......................................................................... 31 2 8.1.4 Priorities of & Support for Small Businesses ................................................................ 32 8.2 Case studies of small businesses .................................................................................... 33 8.3 Conclusions to section 8 ................................................................................................ 33 9 Forthcoming work ................................................................................................................. 34 10 Conclusions ........................................................................................................................... 35 10.1 Summary of state of evidence ....................................................................................... 35 10.2 Ability to address the research questions ...................................................................... 35 10.3 Reflections on evidence ................................................................................................. 37 11 Recommendations ................................................................................................................ 38 Appendix 1 People contacted ...................................................................................................... 39 Appendix 2 Searches conducted .................................................................................................. 39 Appendix 3 Further detail on specific organisations and publications ........................................... 39 Survey of Trading .......................................................................................................................... 39 Forestry Contracting Association ................................................................................................. 40 ASHS ............................................................................................................................................. 40 Scottish Woodlots Association ..................................................................................................... 41 Reforesting Scotland .................................................................................................................... 42 Housebuilders .............................................................................................................................. 43 Appendix 4. Further details of information sources elaborating on Table 1 .................................. 44 Appendix 5 Summaries of case studies presented at FPG Birnam conference ............................... 49 Appendix 6 Literature referenced ................................................................................................ 51 3 Executive summary Context and need 1. The contributions that the